Ex-Twitter CEO Parag Agrawal raises $30 mn for his AI startup: Report


Former Indian-origin Twitter CEO Parag Agrawal has entered the artificial intelligence (AI) race, reportedly raising $30 million for his startup.

Vinod Khosla
Vinod Khosla’s VC firm led the funding for Parag Agrawal’s new AI company.

Agrawal, who was sacked by Twitter (now called X) owner Elon Musk in late 2022, raised $30 million in funding for an AI startup, reports The Information. Vinod Khosla-led Khosla Ventures, an early backer of OpenAI, (the company that made ChatGPT) “led the funding in Agrawal’s company, which hasn’t been publicly disclosed,” the report noted.

Two other venture firms, Index Ventures and First Round Capital, also participated in the deal, according to the report.

Agrawal’s startup is reportedly building software for developers of large language models, popularized by ChatGPT. Late in 2023, Agrawal, Twitter’s former policy lead Vijaya Gadde and other executives won $1.1 million in legal fees from Musk-run X Corp.

In October 2022, Musk informed Agrawal, Gadde and former Twitter chief financial officer Ned Segal that their employment with the company was terminated as he took control of the micro-blogging platform for $44 billion.

According to reports, these three top executives had an exit package of around $90-100 million when they left Twitter.

Agrawal was set to receive the largest payout at around $40 million, largely due “to the entirety of his shares vesting upon his firing”.

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